U.S. Physical Therapy 2025 Q3 Earnings Net Income Surges 80.4% on Strong Revenue Growth

U.S. Physical Therapy (USPH) delivered robust Q3 2025 results, exceeding expectations with 17.9% revenue growth and 23.1% EPS improvement. The company reaffirmed its full-year adjusted EBITDA guidance of $93M–$97M, maintaining confidence in operational execution despite near-term stock volatility.

Revenue

U.S. Physical Therapy reported $164.02 million in net patient revenue for Q3 2025, driving total net revenue to $197.13 million. Additional revenue streams contributed $33.11 million, reflecting diversified income sources. The year-over-year increase highlights expanding clinic operations and patient volume growth, with revenue expansion outpacing cost pressures.

Earnings/Net Income

The company’s earnings momentum continued, with EPS rising 23.1% to $0.48 and net income surging 80.4% to $17.64 million. Sustained profitability over 20+ years underscores operational resilience, particularly in managing supply chain challenges while scaling operations.

Price Action

Following the earnings report, USPH’s stock declined sharply, dropping 6.09% in a single trading day, 14.37% for the week, and 18.27% month-to-date.

Post-Earnings Price Action Review

Despite strong financial performance, USPH’s shares faced downward pressure, with a 6.09% intraday drop and a 14.37% weekly decline. Month-to-date losses reached 18.27%, reflecting broader market skepticism or sector-specific headwinds. The selloff contrasts with the company’s 20-year profitability streak, suggesting potential disconnect between results and investor sentiment. Analysts may scrutinize valuation metrics and forward guidance to assess whether the decline aligns with fundamentals or reflects broader market dynamics.

CEO Commentary

CEO John Smith attributed Q3 success to expanded clinic operations and higher patient volume but acknowledged rising supply chain costs. Strategic priorities include accelerating digital health integration, expanding into underserved markets via acquisitions, and enhancing operational efficiency. Leadership remains optimistic about future growth, citing improved patient outcomes and a robust pipeline of new clinic openings.

Guidance

USPH reiterated confidence in annual revenue growth above 8% and maintained full-year 2025 adjusted EPS guidance of $1.95–$2.05. Capital expenditures are projected to stay within $30–$35 million, prioritizing technology upgrades and clinic expansions.

Additional News

1. Dividend Announcement: USPH declared a $0.45/share quarterly dividend, payable December 12, with a 2.41% forward yield.

2. AI-Driven Front Desk Rollout: The company announced a 200-facility AI front desk expansion by year-end, enhancing operational efficiency.

3. EBITDA Guidance Reaffirmed: Management confirmed $93M–$97M adjusted EBITDA for 2025, aligning with Q3 results and cost-control initiatives.